9:00am (EST)

The bulls got back in the win column on Wednesday after 5 days of heavy selling pressure which pushed the major index lower by 4%.  The talking heads were pointing towards Alcoa (AA, $9.90, up $0.58) as being a “catalyst” for the rebound after the company beat Wall Street’s estimates.  Really?

This is exactly why we call them “talking heads” because Alcoa accounts for less than 1% of the weighted Dow 30 stocks.  In other words, Alcoa was responsible for maybe a point of the Dow’s nearly triple-digit gain yesterday.

We can point to Spain’s bonds falling below 6% which was one of the reasons for the selloff as one of the catalysts for yesterday’s bounce, or better-than-expected economic news.  However, we are chartists and after a 4% decline and two waves of support tested, it was time for a small rebound.

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If you are not a subscriber but would like to read more please click here.  We closed 6 more winning trades yesterday which gets our 2012 Track Record to 67-13 (84% win percentage) that includes 13 triple-digit winners with gains of up to 400+%!  One more time…80 trades, 67 big money option winners.